The QRMP scheme allows eligible businesses to file GST returns quarterly while still paying tax every month. In this guide, we’ll understand the QRMP Scheme in GST in simple language, using real-life situations and practical examples.
Key Takeaways
- The QRMP Scheme allows quarterly GST return filing but requires monthly tax payment.
- It is available only to businesses whose annual turnover stays within ₹5 crore.
- QRMP reduces paperwork but does not reduce GST tax liability.
- The Invoice Furnishing Facility helps business customers claim tax credit earlier but is optional.
- Once selected, QRMP continues automatically unless you opt out or become ineligible.
What is the QRMP Scheme in GST?
Imagine a small IT consultant who raises only a few invoices every month. Earlier, they still had to prepare and file GST returns every single month. The work felt repetitive.
The QRMP Scheme changes only the frequency of filing, not the tax itself.
In simple words:
- You submit GST returns once every three months.
- But you continue paying GST every month.
So paperwork becomes quarterly, while tax payment remains regular.
Under this system:
- Sales details (GSTR-1) are filed once in a quarter.
- The summary GST return (GSTR-3B) is also filed once in a quarter.
- Tax payment is made monthly through a challan.
Many beginners initially think QRMP allows quarterly tax payment. In practice, that is the biggest misunderstanding. Only the filing becomes quarterly — payment does not.
Why the QRMP Scheme Matters for Small Businesses
Let me tell you what usually happens with small traders.
A shop owner may issue only 10–15 invoices a month. Yet, every month they must log in, prepare returns, verify data, and submit filings. Over a year, this becomes repetitive administrative work.
The QRMP scheme was introduced mainly to reduce this compliance pressure.
For most small businesses, this means:
- Less frequent return preparation
- Fewer chances of filing mistakes
- More time to focus on actual business operations
Importantly, GST rules and tax amounts do not change. Only the reporting schedule becomes easier.
Example: How QRMP Works in Real Life
Consider a freelance software developer in Pune earning about ₹80 lakh annually.
Under QRMP:
- GST is paid every month based on sales.
- Returns are filed only once after three months.
If invoices are limited, preparing returns quarterly saves time without affecting tax compliance.
From practical experience, many small service providers feel more relaxed because they handle documentation fewer times during the year.
Who Can Use the QRMP Scheme?
The scheme is meant for smaller taxpayers.
You can use QRMP when your total GST turnover across all businesses linked to one PAN stays within ₹5 crore during the current or previous financial year.
Here’s what this means in simple terms:
If all your GST registrations together generate sales below ₹5 crore in a year, you can choose quarterly filing.
For example:
- If your combined turnover across states is ₹3.2 crore → QRMP is allowed.
- If turnover increases beyond ₹5 crore → quarterly filing stops and monthly filing becomes compulsory.
Turnover is checked at PAN level, not separately for each GST number.
Who Cannot Use QRMP?
QRMP is not available to everyone.
It is meant only for regular GST taxpayers who normally file GSTR-1 and GSTR-3B returns.
QRMP does not apply to businesses already using the Composition Scheme, because they already follow a different simplified system.
Many beginners confuse these two schemes. In reality:
- The Composition Scheme changes how tax is calculated.
- QRMP only changes how often returns are filed.
Conditions Before Choosing QRMP
Before selecting QRMP on the GST portal, a few basic things must already be in place.
You should:
- Be registered as a normal GST taxpayer.
- Have filed your latest GST return.
- Have turnover within the allowed limit.
- Not having partially prepared return data saved for that quarter.
Once invoice data is saved in the system, GST locks the filing type for that period. You must clear saved entries before switching.
Invoice Furnishing Facility (IFF)
Now let’s talk about something that confuses many new taxpayers: Invoice Furnishing Facility (IFF).
Suppose you supply goods to another GST-registered business. That buyer wants to claim Input Tax Credit (ITC) quickly.
If you wait until the quarter ends, their credit also gets delayed.
Invoice Furnishing Facility (IFF) solves this timing problem. It allows you to upload business-to-business invoices during the first two months of a quarter instead of waiting three months.
Here’s a simple situation:
You sell goods in April to a GST-registered dealer. If you upload that invoice using Invoice Furnishing Facility (IFF) by the 13th of May, your customer can claim tax credit earlier.
Invoice Furnishing Facility (IFF) is optional. Many small businesses skip it when they mainly sell to consumers instead of registered businesses.
How Monthly Payment Works Under QRMP
Even though returns are quarterly, GST payment happens every month.
You pay tax by generating a challan on the GST portal and depositing the amount for that month’s transactions.
In practice, businesses usually pay either:
- Based on earlier tax patterns, or
- Based on actual monthly sales calculation.
The payment is generally completed by the 25th of the next month.
This system prevents a large tax burden from building up at the end of three months.
Quarterly Return Filing Under QRMP
At the end of each quarter, you complete two filings:
- Sales return showing invoices issued during the quarter.
- Summary return confirming total tax liability and payments already made.
These returns are submitted in the month following the quarter.
For example, for January–March transactions, returns are filed in April.
Many beginners notice that quarterly filing gives more time to review data carefully, which often reduces correction work later.
How to Opt In or Opt Out of QRMP
Choosing QRMP is done through the GST portal under the returns section.
Once selected:
- The scheme continues automatically in future quarters.
- You do not need to choose it again every time.
However, changes are allowed only during specific time windows before each quarter. Missing this window means waiting until the next period. This is a common real-life issue — taxpayers forget the timing and remain in the same filing cycle longer than expected.
Multiple GST Registrations Under One PAN
Some businesses operate in multiple states and have several GST registrations.
QRMP works registration-wise.
This means you can:
- Use quarterly filing for a smaller branch
- Continue monthly filing for a larger branch
This flexibility helps businesses manage compliance based on actual workload.
Note: The QRMP scheme in GST is linked to each GST registration (GSTIN), not to the PAN. The eligibility check (turnover up to ₹5 Crore) is done at the PAN level. If a taxpayer has multiple GSTINs under one PAN, they can choose QRMP for the eligible GSTINs, while keeping the others on monthly filing.
What Happens If Turnover Crosses ₹5 Crore?
If your annual turnover grows beyond ₹5 crore, the QRMP facility stops applying.
From the next applicable period, you must follow the monthly GST return filing.
This change can happen even during the financial year, so growing businesses should keep track of turnover regularly.
Benefits of the QRMP Scheme
In real Indian business situations, the main advantages are practical rather than technical.
For businesses:
- Fewer return filings during the year
- Reduced administrative workload
- Smaller chances of repetitive filing errors
- More manageable monthly tax payments instead of a large quarterly amount
For buyers: Earlier Input Tax Credit when IFF is used.
The scheme mainly improves convenience — it does not reduce GST liability.
QRMP Scheme Opt-in/Opt-out Timelines
The Quarterly Return Monthly Payment (QRMP) scheme allows taxpayers to opt in or opt out at specific times during the year. The following table outlines the quarters and the corresponding windows when changes can be made:
| S.No. | Quarter (Year) | Opt-in/Opt-out Window |
|---|---|---|
| 1 | Q1 (April – May – June) | 1st February to 30th April |
| 2 | Q2 (July – August – September) | 1st May to 31st July |
| 3 | Q3 (October – November – December) | 1st August to 31st October |
| 4 | Q4 (January – February – March) | 1st November to 31st January (next year) |
Number of Returns – Monthly Filing vs. QRMP (Quarterly Filing)
| Return Type | Returns per Year (Monthly Filing) | Returns per Year (QRMP Scheme) |
|---|---|---|
| GSTR-1 | 12 | 4 |
| GSTR-3B | 12 | 4 |
| Total | 24 | 8 |
Conclusion
The QRMP Scheme is essentially about making GST compliance simpler for smaller businesses. You continue paying tax every month, but paperwork reduces because returns are filed quarterly.
For many Indian freelancers, traders, and small service providers, this balance makes GST easier to manage without changing tax rules. Once you understand the flow — monthly payment and quarterly filing — the system becomes much less confusing.
QRMP Scheme at a Glance — Quick Summary
| Topic | What It Means |
|---|---|
| What is the QRMP Scheme in GST? | The Quarterly Returns with Monthly Payment (QRMP) Scheme allows eligible GST taxpayers to file their GST returns once every three months instead of every month. However, they must still pay GST tax every month through a challan on the GST portal. The scheme mainly reduces paperwork for small businesses. |
| Who is eligible to opt for the QRMP scheme? | Businesses with an annual aggregate turnover up to ₹5 crore in the current and previous financial year can choose the QRMP scheme (PAN-wise). They must also have filed their latest GSTR-3B return before opting in. Many freelancers, consultants, and small shop owners qualify. Suitable for small businesses, freelancers, traders, and service providers. |
| Return Filing Frequency | GSTR-1 and GSTR-3B are submitted every three months instead of monthly. You prepare and file returns only 4 times a year instead of 12. |
| Tax Payment | GST must still be paid every month through a challan (PMT-06). No large tax burden at quarter end; payments stay manageable monthly. |
| Invoice Furnishing Facility (IFF) | Optional feature to upload B2B invoices in the first two months of a quarter. Helps GST-registered customers claim Input Tax Credit earlier. |
| Eligibility Condition | Latest GST returns must be filed and turnover must remain within ₹5 crore. Regular compliance is required to continue using QRMP. |
| Not Allowed For | Composition scheme taxpayers or businesses crossing ₹5 crore turnover. Growing businesses must shift to monthly filing later. |
| Opt-In / Opt-Out | Choice available on the GST portal during specific time windows each quarter. Missing the window means continuing the same filing method for another quarter. |
| Multiple GSTINs | QRMP can be selected separately for each GST registration under one PAN. |
| Main Benefit | Reduced compliance burden without changing GST rules or tax rates. |
| Common Misunderstanding | QRMP does NOT allow quarterly tax payment. Different branches can follow different filing frequencies.Only filing is quarterly — payment remains monthly. |
FAQs About the QRMP Scheme in GST (Quarterly Returns with Monthly Payment)
These FAQs answer both basic and deeper questions that small business owners and beginners in India commonly ask while learning how quarterly GST filing with monthly payment works.
Does the QRMP scheme mean I pay GST only once every three months?
No, this is a common misunderstanding. Under QRMP, GST returns are filed quarterly, but tax payment is still required every month. The scheme changes filing frequency, not the tax payment schedule.
Is the QRMP scheme available to all GST taxpayers?
No. Only regular taxpayers who file GSTR-1 and GSTR-3B returns can use the QRMP scheme. Taxpayers with turnover above ₹5 crore cannot opt for it.
What GST returns are filed under the QRMP scheme?
Under QRMP, taxpayers file GSTR-1 (sales details) and GSTR-3B (summary return) once every quarter. Even though filing is quarterly, tax payments must still be made monthly.
Is the QRMP scheme the same as the GST Composition Scheme?
No, both are different. The Composition Scheme changes how GST tax is calculated and limits input tax credit. The QRMP scheme only changes the return filing frequency.
Is using the Invoice Furnishing Facility mandatory?
No, IFF is completely optional. Many small businesses skip it if they mainly sell to end customers instead of GST-registered businesses.
Can my customer claim Input Tax Credit if I don’t use IFF?
Yes, they still can claim ITC. The only difference is timing. They will receive the credit after you file your quarterly GSTR-1 return.
What happens if my turnover crosses ₹5 crore during the year?
If your annual turnover exceeds ₹5 crore, you become ineligible for the QRMP scheme. From the next applicable period, you must switch to monthly GST return filing.
Can I switch between QRMP and monthly GST filing later?
Yes, taxpayers can opt in or opt out of the QRMP scheme through the GST portal. However, this can only be done during specific time windows before each quarter.
Where can I opt in or opt out of the QRMP scheme on the GST portal?
After logging into the GST portal, go to Services → Returns → Opt-in for Quarterly Return option. From there you can select or exit the QRMP scheme.
Can a GST practitioner opt into the QRMP scheme on behalf of a taxpayer?
No, a GST practitioner cannot select this option for you. Only the taxpayer themselves can opt in or opt out of the QRMP scheme on the portal.
I have multiple GST registrations under one PAN. Can only one use QRMP?
Yes. QRMP works GSTIN-wise, not PAN-wise. This means one branch can follow quarterly filing while another continues monthly filing.
Do I need to select the QRMP scheme every quarter?
No. Once you opt for QRMP, it continues automatically in future quarters. You only need to change it if you decide to opt out or your turnover exceeds the limit.
What are the basic conditions to opt for the QRMP scheme?
The taxpayer must be a regular GST taxpayer, have turnover up to ₹5 crore, and must have filed the latest GSTR-3B return. Also, there should be no saved data in GSTR-1 for that period when choosing the scheme.
Can a new GST-registered business choose the QRMP scheme?
Yes, new businesses with turnover up to ₹5 crore can opt for QRMP. However, if registration happens in the last two months of a quarter, they may have to start QRMP from the next quarter.
Does the QRMP scheme reduce GST taxes or penalties?
No, the QRMP scheme does not reduce taxes or penalties. It only reduces how often you file GST returns.
Is QRMP helpful for small businesses and freelancers?
Yes, many freelancers, consultants, and small traders prefer QRMP. Filing returns only four times a year makes GST compliance simpler and less stressful.
What is a common mistake beginners make with QRMP?
Many people think quarterly filing means no GST work for three months. In reality, you must still track invoices and pay tax every month.
Can I opt for QRMP in the middle of a financial year?
Yes, you can choose QRMP before the start of each quarter during the allowed time window. Missing the deadline means you must wait until the next quarter.
What happens if I forget my monthly tax payment under QRMP?
If monthly tax payment is missed, interest and penalties may apply, just like regular GST filing. The scheme does not change compliance rules.
Why did the government introduce the QRMP scheme?
The government introduced QRMP to reduce the compliance burden for small businesses. Filing fewer returns makes GST easier to manage.
